Bitcoin (BTC) failed to recover $30,000 after losing support on Tuesday as the Fear & Greed indices bottomed out.
BTC / USD 1 Hour Candle Chart (Bitstamp). Source: TradingView
Bitcoin price is below the $30,000 line
The larger cryptocurrency saw the price of a turbulent night, adding abruptly to existing losses to seal negative 24-hour returns of -6%.
The change was accompanied by a feeling of bitterness in traditional markets. The Fear & Greed Index, which uses a basket of factors to determine mood among market participants, fell into the “extreme fear” zone on Tuesday, measuring 17/100.
At the same time, the cryptocurrency equivalent, the Crypto Fear & Greed Index, raced to catch up, dropping to 19/100 – also denoted as “extreme fear”.
Crypto Fear & Greed recorded local lows of just 10/100 last month, while the traditional counterparty’s score dropped by half in a week.
Perhaps predictably, traders were more cautious.
“Rejects $32.3K, Rejects $31K, and now in the next support zone,” Cointelegraph Michaël van de Poppe warned.
No real volume yet, through which the liquidity tap has yet to happen or we’ll see a $24K test for Bitcoin.
On Monday, trader and analyst Rekt Capital summed up the bleak picture in spot markets, concluding that the downside is likely to prevail. In the event, BTC/USD fell almost exactly towards its target zone.
“BTC lost weekly (black) support and convincingly lost 50-week blue EMA,” summarized it on Twitter next to the relevant graphic.
The BTC failed to preserve the bullish momentum that originated in the green box. In fact, pressure from the seller side may increase on the BTC and may force a return to the green area soon.
Altcoins double daily losses
A look at the buy and sell positions on the main Binance exchange, however, it showed that support remains between $27,000 and $29,000 despite the price drop.
Resistance, on the other hand, was below $35,000, providing a silver lining for bulls who expected a quick rally if the market found fuel for a U-turn above the $30,000 mark.
Altcoins compounded existing weakness with Bitcoin’s downfall, with many of the top 50 cryptocurrencies by market capitalization hitting 20% weekly losses.
Ether ( ETH ), the biggest altcoin, it lost a 2021 long-term uptrend on Monday, continuing to trade below $1,800.